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Info Edge - Concerns Around Zomato’s Gig Work Unwarranted: ICICI Securities

Info Edge - Concerns Around Zomato’s Gig Work Unwarranted: ICICI Securities

The logo of Zomato sits on the food delivery service company website. (Photographer: Dhiraj Singh/Bloomberg)
The logo of Zomato sits on the food delivery service company website. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

  1. Legislative / judiciary actions on gig work in U.S. and UK (e.g. UK Supreme Court’s recent ruling),

  2. Deliveroo’s IPO debacle (down 31% on listing) due to legal / environmental, social, and corporate governance concerns and

  3. Second wave impact on Naukri’s billings led to ~15% correction in Info Edge Ltd. from its peak.

As outlined in our food-tech thematic, the Indian Social Security Code 2020 is more conducive for gig work.

Unlike in the West, we reckon an average rider earns higher than minimum wage / provident fund threshold (~Rs 20-23,000 / month) and is more satisfied with aggregators like Zomato/Swiggy.

In the worst case, we expect some mandatory contribution for the social security fund being envisaged for gig workers.

Click on the attachment to read the full report:

ICICI Securities Info Edge Company Update June 2021.pdf

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